LONDON (dpa-AFX) - National Grid plc. (NG.L, NGG) confirmed Thursday that it has reached a three-year settlement agreement with the Rhode Island Division of Public Utilities and Carriers, following the rate filing request made in November 2017 for Narragansett Electric and Gas utilities in Rhode Island.
The agreement will now go before the Rhode Island Public Utilities Commission for final review and approval. New rates will be effective on 1 September 2018.
The settlement provides incremental revenue increases in each of the three years. Revenue will increase by $26m in the first rate year, with a cumulative increase of $48m across all three rate years. The rate filing requested a first year revenue increase of $77m for the Electric and Gas utilities, which was reduced to $41m to reflect the reduction in the US tax rate.
The settlement allows for a Return on Equity of 9.3%, and introduces new upside-only Performance Incentives Mechanisms of 30 to 50 bps. Annual capital investment of $240 million will continue to be recovered under the state's gas and electric Infrastructure, Safety and Reliability plans.
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